Will oil start to rise since the Olympics are over?

[dex]

I'm just guessing that the Chinese slowed their purchase of oil prior to and during the Olympics resulting in the recent decline. They may of done it so it didn't become a distraction.

I have no evidence of this just a guess on my part.

What do you think?

 

[REWahoo]

I think a more plausible theory might be prices dropped due to a decline in demand - everyone is home watching the Olympics on TV rather that out driving around. Watch out for next week!

 

[chinaco]

The price will fluctuate. Assuming you are talking in the short-term (next 6 mos). Oil will likely trend down unless there is some disruption (or speculation of disruption) in supply. Demand appears to be dropping (less consumption) because of economic slow-down.

No one knows where the price will stablize in the short-term. Some believe around $100/bl

 

[cute fuzzy bunny]

or speculation of disruption in supply

I think what we're seeing is a good supply of disruption of speculation, and I think its going to continue!

 

[Walt34]

I think higher prices caused reduced demand in the short term. Long term, prices will go up as demand continues to increase.

 

[cute fuzzy bunny]

A point of reference. The highest price ever for oil and gasoline (back at the end of 1979), adjusted for inflation to todays dollars, would be around $103/barrel and ~$3/gallon for gas.

I dont think I need to revisit why oil was that expensive. The circumstances were severe and the price was considered crazy ridiculous.

So if we merely settle back to "crazy ridiculous", oil will continue to drop and so will gas.

Its also interesting to note that adjusting for taxes, interest rates and unemployment rates (all of which are much lower today), todays average family has about $500 more per month in todays dollars to spend vs 1979. That buys a lot of gas.

 

[ziggy29]

Nope. Still own my stake in USO to keep a lid on oil prices.

 

[cute fuzzy bunny]

When it briefly popped up a couple of days ago I thought perhaps you'd sold.

Keep up the good work. In fact, since it was deemed a good investment at 115, perhaps you should load up on a bunch more now that its a real bargain!

 

[DallasGuy]

I've read that the oposite may actually happen...that oil prices may go down because demand in China could drop after the Chinese government lowers the subsidies they put on gas (which keeps the price of gas artifically low). Perhaps it won't happen right after the olympics, but eventually it probably will. The Chinese government is keeping energy prices artifically low and at some point in the future they'll probably have to raise prices to catch up with the rest of the world. This will lower demand for oil...or at least decrease the increase in demand.

http://www.nytimes.com/2008/06/21/business/worldbusiness/21gas.html

 

[Notmuchlonger]

I say oil will go up. Just because Im a positive type of guy.